LONDON, June 13 (Reuters) - The European Bank for
Reconstruction and Development expects to start talks on
building stakes in Ukrainian banks in the next few months as it
looks to ensure that Ukraine's financial system does not rupture
in the wake of tensions with Russia.

In an interview with Reuters, Francis Malige, the EBRD's new
head for Eastern Europe and the Caucasus, said the situation in
Ukraine looked to have stabilised in recent weeks, although it
was still far too early for optimism.

"We don't see at this stage an element that should push us
to revise them in any direction," Malige said. "If I was a
rating agency I would say it's not on negative watch, but it's
not on positive watch either."

He said the EBRD's involvement in a big road building
project, energy initiatives and a metro system upgrade meant it
was firmly on track with plans to raise spending in Ukraine in
response to its crisis to a billion euros this year.
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